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Press Release No. 98/57
November 19, 1998
International Monetary Fund
700 19th Street, NW
Washington, D.C. 20431 USA

IMF’s New Arrangements to Borrow Enter into Force

With the adherence of the United States and Germany, the New Arrangements to Borrow (NAB), approved by the Executive Board of the International Monetary Fund (IMF) on January 27, 1997 (see Press Release No. 97/5), became effective on November 17, 1998. The NAB are a set of credit arrangements between the IMF and 25 members and institutions to provide supplementary resources to the IMF to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system.

The NAB do not replace the existing General Arrangements to Borrow (GAB), which remain in force. The total amount of resources available to the IMF under the NAB and GAB combined will be up to SDR 34 billion (about US$ 48 billion), double the amount available under the GAB alone. By strengthening the IMF's ability to support the adjustment efforts of its members and to address their balance of payments difficulties, the NAB are an important element of the IMF's capacity to respond to potential systemic problems.

The NAB decision will be in effect for five years from November 17, 1998, and may be renewed.

The list of NAB participants and their credit arrangements is listed below.


Participants and Amount of Credit Arrangements under the NAB



Amount

Participant

(SDR millions)



Australia

810

Austria

412

Belgium*

967

Canada*

1,396

Denmark

371

Deutsche Bundesbank*

3,557

Finland

340

France*

2,577

Hong Kong Monetary Authority

340

Italy*

1,772

Japan*

3,557

Korea

340

Kuwait

345

Luxembourg

340

Malaysia

340

Netherlands*

1,316

Norway

383

Saudi Arabia*

1,780

Singapore

340

Spain

672

Sveriges Riksbank*

859

Swiss National Bank*

1,557

Thailand

340

United Kingdom*

2,577

United States of America*

6,712



Total

34,0001



*Also a participant in, or associated with, the GAB.


1On November 17, 1998 SDR 1 equaled US$1.39731.



IMF EXTERNAL RELATIONS DEPARTMENT

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